Anti-Counterfeiting Task Force moves to foundation

Nov 20, 2018 | ICTA/NCBA, News

The Industry Council for Tangible Assets and the Anti-Counterfeiting Educational Foundation have jointly announced an agreement to transfer the Anti-Counterfeiting Task Force and the position of director of anti-counterfeiting from ICTA to the non-profit 501-C-3 foundation.

The transfer became effective Nov. 15.

The volunteer task force and the director of anti-counterfeiting position were created and launched by ICTA in January 2017 following an industrywide summit in August 2016 that decided the numismatic community should harness its resources and commit to fighting the invasion of counterfeit coins threatening the marketplace. The summit was spearheaded by leaders of ICTA, the American Numismatic Association, and the Professional Numismatists Guild.

Beth Deisher joined the ICTA staff as director of anti-counterfeiting and has coordinated the 44-member task force for the past 23 months. She will continue in the position, working under the authority of the Anti-Counterfeiting Educational Foundation. She works out of her home office located in Sylvania, OH.

ACTF’s mission is to mobilize law enforcement to protect the integrity of U.S. coinage by educating officials about the growing threat that counterfeit circulating coins, collectible classic coins, and investment bullion coins and precious metals bars pose to the collecting community and the public. The task force also provides education and training for law enforcement, the collecting community, and the general public.

“We believe this is a perfect fit,” said ICTA Executive Director Jimmy Hayes. He noted that the task force and the foundation share the same mission.

Hayes said that ICTA will continue to assist the task force, especially with regard to legislation needed to stop the flow of counterfeit coins and precious metals bars entering the marketplace or changes to provide more effective enforcement of current laws.

Hayes also explained the transfer will allow ICTA to focus on another looming problem, the effects of the recent U.S. Supreme Court decision regarding South Dakota vs. Wayfair, which permits states and localities to tax all retail sales (brick-and-mortar and internet) based on the location of the buyer. ICTA will seek a legislative remedy to the costly and burdensome mandate requiring coin dealers to collect and remit taxes to every taxing jurisdiction throughout the nation.

ACEF Acting President Gary Linthicum expressed the ACEF Board’s appreciation for ICTA’s leadership, work, and financial support in launching the task force and guidance during its formative period.

Linthicum said that ICTA is gifting to the foundation the office equipment that it purchased for use by the director of anti-counterfeiting and will provide administrative support during the transition.

“We expect the task force and Beth to continue their work uninterrupted during the transition and we look forward to making major headway in our shared mission of defeating the counterfeiters and making our marketplace safer for all buyers and sellers,” Linthicum said.

The task force and foundation are totally funded by donations. Tax deductible donations to support the work of the task force can be made to the Anti-Counterfeiting Educational Foundation at P.O. Box 903, Sylvania, OH 43560. For information about donating contact Beth Deisher at 567-202-1795.

ICTA Names New Director and Officers and Elects New Board Members

Oct 4, 2018 | ICTA/NCBA, News

ICTA executive director Jimmy Hayes

Said John Fisher, newly appointed ICTA chair, “The recent Supreme Court decision in South Dakota v. Wayfair has already created massive compliance problems for rare-coins and precious-metals bullion dealers and their customers, just as it has for state governments, all small businesses, and consumers nationwide. This issue will be the top priority for ICTA in the immediate future. In appointing Jimmy Hayes as the new executive director, ICTA is availing itself of someone who has broad experience on this issue and in seeking to create the optimum solution for state governments, dealers, and consumers.”

Jimmy Hayes’s name is recognized by many collectors as part of the pedigree of numismatic rarities from his own collection, which was among the first to be awarded PCGS “Hall of Fame” status. After graduating from Tulane Law School, Jimmy practiced for several years in Louisiana before holding the title of Louisiana Commissioner of Financial Institutions and Commissioner of Securities. He co-authored the current Louisiana banking code. After serving ten years in Congress, during the latter part of which he was a Ways and Means Committee member, Jimmy left Congress and took a position as vice president of ACLI, the life insurance industry’s trade association. In 1999, Jimmy Hayes formed Washington Matters LLC, which served such clients as GE, the Miccosukee tribe, Dade County Farm Bureau, the Chicago Sun-Times, and others, including ICTA’s “sister” organization, CERT. Jimmy’s passion for American history has led to his previous service on the boards of the U.S. Capitol Historical Society, the National First Ladies’ Library, and the American Numismatic Society. His efforts for CERT led to the passage of the Collectible Coin Protection Act of 2014.

At ICTA’s recent board of directors and general membership meeting in Philadelphia, Pennsylvania, the Industry Council for Tangible Assets installed its new officers for 2018–2020.

John Fisher, president of Fisher Precious Metals in Deerfield Beach, Florida, was named as the new chairman. Fisher served on the ICTA board for several years prior to being named the chair.

The remaining officers named during the meeting include vice chair David Greenstein (Aurum Trading, Chicago, Illinois); secretary Richard Weaver (Delaware Valley Rare Coins, Broomall, Pennsylvania); and treasurer Pat Heller (Liberty Coin Service, Lansing, Michigan).

New board members elected were Bob Brueggeman (Positive Protection), John Brush (David Lawrence Rare Coins), Simon Codrington (Hugh Wood), Tom Hallenbeck (Hallenbeck Coin Gallery), Patrick Ian Perez (CDN Publishing), Gary Linthicum (Universal Coin & Bullion), Scott Schwartz (FideliTrade Incorporated), and Max Spiegel (Numismatic Guaranty Corporation).

About ICTA

ICTA is a 501(c)(6) tax-exempt trade association that represents the coin, currency, and precious metals industries. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website—ictaonline.org.

ACEF receives IRS approval, now public charity

Aug 30, 2018 | ICTA/NCBA, News

The IRS has granted the Anti-Counterfeiting Educational Foundation final approval as a 501(c)(3) non-profit organization and designation as a public charity.

“IRS final approval allows ACEF to move forward in many different directions to raise funds,” said ACEF President Scott Spitzer, CEO of Manfra, Tordella & Brookes.

ACEF was formed in January 2018 and has been operating under provisional status for the purpose of receiving contributions from individuals, other 501(c)(3) organizations, local and regional coin clubs, grants, eBay for Charities, and government agencies to support the work of the Industry Council for Tangible Assets Anti-Counterfeiting Task Force.

The task force’s primary mission is to educate law enforcement officials about the threat counterfeits pose to the marketplace and to the public. It provides education, expertise, and other resources to law enforcement to assist in curtailing the manufacture, importation, marketing, and sale of counterfeit coins, fakes of precious metals products, and counterfeit security packaging. The task force also provides training and educational materials to dealers, private mints, sovereign mints, and the public.

The foundation’s board of directors is comprised of seven members, who review and approve project proposals from the task force to ensure that they meet IRS 501(c)(3) regulations.

For those wishing to make a charitable tax donation, please make checks payable to the Anti- Counterfeiting Educational Foundation and mail to ICTA, P. O. Box 237, Dacula, GA 30019. For information about donating, contact Kathy McFadden at 410-626-7005 or kathy.mcfadden@ictaonline.org.

Three receive 2018 ACTF Al Kreuzer Memorial Award

Aug 16, 2018 | ICTA/NCBA, News

The Industry Council for Tangible Assets recognized three individuals Aug. 15 for their outstanding work in combatting counterfeiters and those who traffic in counterfeit coins and currency in the United States.

Doug Davis, Nicholas L. Tranchitella, and Richard Weaver received ACTF’s annual Al Kreuzer Memorial Award presented during ICTA’s annual banquet held in Philadelphia during the American Numismatic Association’s World’s Fair of Money.

The ACTF award — in the form of a three-inch, antique bronze medal — is named for long-time California coin dealer Alan “Al” Kreuzer, who died in 2016. His business, Alan Kreuzer Rare Coins and Collectibles, was in Castro Valley, Calif. Kreuzer was instrumental in identifying counterfeit certified holders that made their way around the Bay Area. Kreuzer’s daughter, Chandra, upon learning about ICTA’s establishment of the Ant-Counterfeiting Task Force in January of 2017, donated $50,000 in honor of her father. The donation played a key role in launching the work of the task force.

Homeland Security Investigations Special Agent Nicholas L. Tranchitella, Delaware Valley Rare Coins President Richard Weaver, and NCIC President Doug Davis were awarded ACTF’s 2018 Al Kreuzer Memorial Award for outstanding work in combating counterfeiters and those who traffic in counterfeit coins and currency in the United States. (ICTA image by David Crenshaw)

Davis is founder and president of the Numismatic Crime Information Center and currently serves as the city manager of Pantego, Texas. He is a former Pantego chief of police and has more than 30 years of experience in law enforcement and the numismatic industry. Founded in 1987, the mission of NCIC is to serve as a national and international resource for collectors, dealers and law enforcement in the education, prevention and investigation of crimes involving coins, paper money, tokens and related numismatic items. NCIC fulfills its mission through maintaining a database of numismatic crimes and stolen property; providing technical assistance to local, state, federal and international law enforcement agencies in the investigation and prosecution of numismatic crimes; offering training to local, state, federal and international law enforcement agencies in the investigation of numismatic crimes; and educating collectors and dealers in the prevention of numismatic crimes and the important role each plays within the investigative process. Davis provides valuable leadership in two of ACTF’s Work Groups – Expert Networks and Education-Law Enforcement.

Tranchitella is a Special Agent in the Cherry Hill, N.J., office of the Homeland Security Investigations division of the U.S. Department of Homeland Security. He was the lead investigator in the case against Jonathan A. Kirchner, who currently awaits sentencing on charges of falsely impersonating an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and unlawfully importing counterfeit coins and bars into the United States. Special Agent Tranchitella arranged for the special loan of a selection of counterfeit coins, bars, and grading service holders confiscated in the Kirchner case for exhibit in a public display at the Pennsylvania Convention Center Aug. 14-18 during the WFOM so the public can gain an understanding of the wide range of items being counterfeited as well as the highly deceptive nature of the fakes. Items in the exhibit constitute about 20 percent of the counterfeits seized in the investigation. If the fake coins and bars in the exhibit were genuine, their current market value would be more than $10 million.

Richard Weaver, president of Delaware Valley Rare Coins in Broomall, Pa., played a crucial role in the apprehension of Jonathan A. Kirchner. Two of Kirchner’s victims, a couple, came to Weaver’s coin business seeking an evaluation of 49 Morgan dollars they had purchased from Kirchner, whom they had met via Facebook. Weaver determined that all of the Morgan dollars were counterfeit and informed the couple. They told Weaver they had trusted Kirchner because he told them he was an ATF agent who was selling coins as a side business. He displayed his ATF badge on his Facebook site and wore it when he met with them. They also told Weaver that they had a tentative appointment with Kirchner to purchase more items in a couple of days. Upon learning the details, Weaver immediately contacted ACTF’s Expert Network and ACTF alerted its contacts within federal law enforcement, who immediately identified the ATF badge on Kirchner’s Facebook site as counterfeit. Working with the couple, ATF and Homeland Security Investigations set up a sting operation with an undercover agent posing as the sister of the couple. Kirchner was arrested in the act of selling counterfeit coins to the undercover agent.

After the arrest, law enforcement officials executed a search warrant of Kirchner’s house and Customs and Border Protection intercepted packages shipped to him from China. Weaver has served as law enforcement’s numismatic expert in the Kirchner case, devoting many hours to identifying all the counterfeit coins, bars, and grading service holder components. In addition, he has provided a current market value for each item if it had been genuine so that law enforcement can determine the potential harm to victims and to the marketplace.

Weaver is a member of ACTF’s Research Work Group and is also vice president of the Professional Numismatist Guild.

ICTA Celebrates 35 Years of Business

Aug 8, 2018 | ICTA/NCBA, News

The Industry Council for Tangible Assets (ICTA) is incredibly proud to have turned 35 in July—but we’re even more proud of how we achieved it. ICTA is governed by a volunteer Board of Directors elected by the membership. The list of the association’s past chairmen reads like a “Who’s Who” of the rare-coin / precious-metals industry: the first chair was Luis Vigdor, followed by ICTA leaders Jesse Cornish and Joseph Povey (co-chairs), Jesse Cornish, Henry Beckler, Bruce L. Kaplan, Stan Medlar and John Norris (co-chairs), John Norris, Mike Clark, Tom Noe, Don Doyle, Terry Hanlon, Mal Varner, Paul Montgomery, Todd Imhof, Steve Ivy, Fred Weinberg, Gary Adkins, Bob Greenstein, Harry Miller, Philip Diehl, and currently John Fisher.

ICTA was created in response to federal legislation, passed in 1981, that removed tangible assets from individual retirement accounts (IRAs). Prior to 1981, investor portfolios could include many tangible assets—artwork, valuable rugs, antiques, rare coins, and precious metals. The federal legislation banning tangibles in investment/retirement accounts sneaked by the rare-coin and precious-metals community, which had no advocacy organization in Washington, D.C. Jim Blanchard and others organized several meetings in New Orleans and Washington to create an industry-advocacy organization. ICTA was incorporated as a 501(c)(6) organization in July 1983, and in 1985 ICTA’s staff and Board of Directors began the work of restoring precious metals and coins as qualified investment products. Bullion products were successfully restored in 1997, and efforts to restore rare coins is ongoing.

For the past 35 years, ICTA has been the voice of rare-coin and precious-metals dealers in Washington and has served and continues to serve on many fronts as an advocate for dealers on the state and local levels. The scope of the association’s activities has increased dramatically since its formation. The following are just a few highlights of ICTA’s accomplishments over the past 35 years:

• Successfully lobbied for American Eagles’ eligibility as IRA investments.
• Initiated state sales-tax exemption efforts.
• Negotiated with IRS to create reasonable broker-reporting regulations.
• Created Broker Reporting and Cash Reporting Information Kits—the first such compilations of compliance information and guidance for coin dealers.
• Invited by the FTC to be one of the very few national participants in the FTC conference to modify the Telemarketing Sales Rule. ICTA successfully negotiated reasonable regulations for the coin industry and established a positive relationship with the FTC.
• Achieved restoration of most bullion products as qualified for inclusion in IRAs and other self-directed retirement plans as part of the Taxpayer Relief Act of 1997.
• Achieved a 15-day safe harbor from California sales-tax nexus for out-of-state dealers attending shows in that state.
• Immediately following 9/11, contacted the FAA regarding the airlines’ carry-on bag limits to ensure dealers are permitted to carry their inventory on board; and continues to work with the TSA and DHS (Department of Homeland Security) on all issues related to dealers’ air-travel security.
• Invited by the U.S. Treasury to provide input on post-9/11 anti-terrorism regulations. These discussions resulted in less-onerous regulations for coin and precious-metals dealers in Section 352 of the oUSA PATRIOT Act.
• Negotiated a significantly reduced fee agreement with an anti–money laundering (AML) / cash-reporting expert to provide customized AML plans for ICTA dealers as required by Section 352.
• Co-sponsored (along with Whitman Expos and the ANA) a new law in Maryland that allows dealers to attend three shows, plus the ANA, in that state within a 365-day time frame without being required to obtain a Maryland trader’s license.
• Helped defeat the Farm Bill’s Harkin amendment, which would have created precious metals cash-market regulation by the CFTC.
• Assisted and succeeded in passing sales-tax exemption legislation, resulting in 32 states with exemptions and 5 states that have no sales tax for a total of 37 states.
• Defeated numerous legislative attempts to repeal states’ sales-tax exemptions.
• Launched LexisNexis® StateNet®, which monitors legislative and regulatory issues in all 50 states and Congress.
• Established the State Affairs Committee, in which volunteer monitors now watch and report on legislative and regulatory bills in their states.
• Sent out numerous press releases that have appeared in all of the trade magazines in the last five years, increasing our membership as a result.
• In the past five years, assisted Nebraska, Indiana, Virginia, Ohio, Minnesota, North Carolina, and Alabama in passing sales-tax exemptions, expanded exemptions in Oklahoma and Virginia, and reinstated the exemption in Louisiana.
• Defeated legislation to repeal the sales-tax exemptions in Pennsylvania and Maryland.
• Collaborated with the Minnesota Department of Commerce for two years on amending the erroneous coin-and-bullion-dealer law. When passed, it was more favorable to the dealers and collectors.
• Participated in amending the California Collectibles sale of autographed memorabilia legislation.
• Assisted in defeating secondhand-holding laws in numerous states.
• Creating and implemented a long-range and strategic plan.
• Updated ICTA’s 33-year-old bylaws and moved incorporation from the District of Columbia to Delaware.
• Presented seminars on the ICTA/ACTF update at all the major shows and coin clubs around the country.
• Assisted in the passage of HR 2754, the Collectible Coin Protection Act, in the U.S. House and Senate.
• Appointed legislative consultant Jimmy Hayes to monitor legislation that impacts our members, namely the substitute bill for the Marketplace Fairness Act and legislation introduced to curtail Operation Choke Point.
• Launched the Anti-Counterfeiting Task Force (ACTF) to mobilize law-enforcement resources to protect the integrity of U.S. and world coinage by educating officials on the economic impact and growing threat of counterfeit circulating, collectible, and bullion coins. In 18 months, ACTF has become the primary industry liaison with law enforcement and other government agencies and has provided education, expertise, and other resources to law enforcement to curtail the manufacture and distribution of counterfeit coins in the United States. ACTF’s Expert Network has assisted in the investigation of more than two dozen cases involving counterfeiting. The task force is also leading the way in educating dealers, collectors, and the public about how counterfeiting is impacting the numismatic industry.
• Launched the Anti-Counterfeiting Educational Foundation 501(c)(3) to support ACTF in the educational aspects of its work.
• Responded to the South Dakota v. Wayfair Supreme Court decision, which could cripple small businesses in every state. The Court’s decision is that states can now require online retailers to collect sales-tax revenue from consumers beyond their borders.

Considering ICTA’s limited financial means over the years, the progress the association has made is simply amazing. That couldn’t be truer for ICTA today. Historically, the association’s mantra has always been to do more with less. ICTA members are always going the extra mile to take on the monumental challenges faced by every dealer and collector. Terry Hanon (Dillon Gage) recently said, “ICTA has never been in better shape than it is today. ICTA has always had to struggle financially because less than a quarter of the coin and bullion dealers are members. Every dealer and collector that reaps the benefits of all the legislative and regulatory actions in the country and now the anti-counterfeiting efforts should be a member and financially support the association.”

There have been many estimates over the years on how many coin businesses there are in the United States. A reasonable estimate is around 5,000. ICTA’s total membership is less than 600, which includes dealers, collectors, and clubs. More than half of the dealer-members are members at the Basic ($300) level. To maintain our current efforts in passing sales-tax exemption legislation, defeating the repeal of existing sales-tax exemptions, heading off other onerous legislation, and working with regulatory government agencies in all 50 states and Congress—not to mention efforts like the most recent development with South Dakota v. Wayfair and the significant work of the ACTF—we are asking existing members to increase their current membership level, and we are seeking new members.

Increasing our membership is an effective means of maintaining and expanding our efforts. ICTA’s current members are carrying the load, not only financially, but with many hours of volunteer work on the association’s behalf. Without financial help, ICTA does not have funds to maintain the human resources it takes to sustain the success it has generated over the last 35 years. The need is great for the dealer and collector communities, and for everyone affected by legislative regulations and counterfeits in the marketplace, to pitch in.

About ICTA

ICTA is a 501(c)(6) tax-exempt association that represents the coin, currency, and precious metals industries. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website—ictaonline.org.

Silver, Gold American Eagles Most Counterfeited Bullion Coins

Jun 27, 2018 | ICTA/NCBA, News

Since 1986 when the United States Mint first introduced silver and gold American Eagle bullion coins, they have been top sellers in the United States as well as around the world.

A new survey conducted by the Anti-Counterfeiting Task Force indicates the popular U.S. bullion coins are now leaders in a category their manufacturer would rather not be in—the most frequently encountered bullion coin counterfeits.

Some 43.3 percent of coin dealers in the United States report encountering customers seeking to sell them counterfeit silver American Eagle bullion coins. Similarly, 41.2 percent report customers trying to sell them fake gold American Eagle bullion coins. The most frequently encountered fake foreign gold bullion coins include the South African gold Kruggerand at 30.4 percent, the Canadian gold Maple Leaf at 24.2 percent, and Mexican gold 50 pesos at 20.1 percent.

“The survey results are not surprising to us,” said Beth Deisher, the Industry Council for Tangible Assets Director of Anti-Counterfeiting. “Counterfeiters—primarily from China—target the most popular products, usually market leaders with the highest brand identification.”

She cited survey results in two other categories – bullion bars and collectible classic U.S. coins.

PAMP (Suisse) gold ingots and bars are the worldwide market leader; 57.8 percent of U.S. dealers in the survey reported customers seeking to sell them counterfeit gold PAMP bars and 36.1 percent reported encountering fakes of Australia’s Perth Mint gold bars. For silver, fakes of privately minted bars bearing the logos of the SilverTowne Mint, 24.7 percent, and the private Sunshine Mint (19.9 percent) registered highest in the survey.

Among collectible classic U.S. coins, Morgan silver dollars at 71.7 percent led the list of most frequently encountered counterfeits, followed by Trade dollars, 66.6 percent; Seated Liberty dollars, 48.6 percent; Lincoln cents, 35.9 percent; Peace dollars, 33.1 percent; and Early American copper large cents and half cents, 29.7 percent.

Among collector gold U.S. coins, 42. 1 percent of the dealers reported counterfeits of the $2.50 gold coin are the most frequently encountered, followed by fakes of $5 gold, 36.2 percent; $20 gold, 33.4 percent; $1 gold, 33.1 percent; and $10 gold, 27.6 percent.

Deisher noted it is illegal to possess, buy, or sell counterfeits of U.S. or foreign coins and that most dealers refuse to knowingly purchase fakes.

“Dealers tell us they often encounter people who have unknowingly purchased fake coins or bars via the internet or from flea markets thinking they have gotten a bargain because the price they paid is a fraction of the market value of the real items. When they attempt to sell their “bargains” to dealers they learn there is no Santa Claus in numismatics. Their fakes are worthless.” Deisher said.

She said that dealers also encounter people trafficking in counterfeits who know exactly what they are trying to sell. “The traffickers are quick to leave when they realize they can’t fool the dealer,” Deisher explained.

According to the survey, 92.4 percent of the dealer respondents said they rely on their personal knowledge of coins and bars to identify fakes and 60.6 percent use counterfeit detecting equipment to verify their suspicions. Some 41.4 percent report having completed counterfeit detection classes with the remainder having attended seminars or educational presentations detailing deceptive counterfeits in the marketplace.

More than 80 percent of the survey participants noted an increase in the number of counterfeit coins and bars entering the marketplace during the past five years.

Had the counterfeits they have encountered in the past year been genuine, 28.8 percent estimated the value would have been between $1,000 to $5,000 with 8.4 percent estimating the value at more than $300,000. More than 50 percent of the respondents placed the value between $5,000 and $300,000.

More than 68 percent of the dealer respondents reported encountering counterfeits sporadically over weeks and months, while 9.2 percent reported being offered them two to three times a week and 1.9 percent being offered them daily.

Deisher emphasized that members of the buying public can best protect themselves from counterfeits by purchasing from knowledgeable, reputable dealers and directly from the government or private Mints that manufacture the coins and bars.

The online survey of dealer members of the Industry Council for Tangible Assets, the Professional Numismatist Guild, and the American Numismatic Association was developed and conducted June 7 through 14 by the Research Work Group of ICTA’s Anti-Counterfeiting Task Force.

The Industry Council for Tangible Assets formed the Anti-Counterfeiting Task Force in January 2017. ACTF’s mission is to educate law enforcement authorities and policymakers about the rising threat of counterfeiting, mobilize law enforcement to attack counterfeiters where they are most vulnerable and provide expertise and other resources in the investigation and prosecution of counterfeiters and those involved at all levels of their distribution networks.

ICTA is a 501(c)(6) non-profit association and is supported solely by dues and contributions. The ACTF is supported solely by contributions. Contributions or gifts to ICTA or ACTF are not tax deductible as charitable contributions. However, contributions may be deductible as a business expense, so please consult with your tax accountant. For those who wish to make a charitable tax-deductible donation, please make checks payable to the Anti-Counterfeiting Educational Foundation and mail to ICTA, P.O. Box 237, Dacula, GA 30019. For information about donating, contact Beth Deisher at 567-202-1795; email beth.deisher@ictaonline.org.

Warning to Coin Community About Supreme Court’s Interstate Sales-Tax Ruling

Jun 26, 2018 | ICTA/NCBA, News

The landscape of online shopping changed with last week’s Supreme Court 5-4 decision in the South Dakota v. Wayfair case. The Court’s decision is that states can now require online retailers beyond their borders to collect sales-tax revenue from consumers.

While most news reports covering the decision refer to “internet sales” subject to states sales-tax, two important points are overlooked.

The first is that all remote (interstate) sales are subject to the decision, not just internet sales. For example, sales across state lines could be taxed whether originating from an internet transaction or initiated in any other form whatsoever and however communicated.

The second is that the Court’s opinion assumes that the consumer’s (buyer’s) residence dictates the point of collection.

The Court’s assumption as to point of collection means that a seller must find a way to deal with thousands of state and local sales-taxes instead of calculating a sale as if made in the seller’s state and local residence.

Therefore, unless Congress acts, numerous sales-taxes will become targets of state legislatures, not just internet sales. More importantly, sales-taxes can be applied to anything of any kind or character, hypothetically including accounting and/or legal advice, stocks and bonds, commodities like natural gas and products moved through pipelines—an endless list.

Many states have taxes on their books already that were struck down as violating interstate commerce. The Court places those laws back on the table.

In ICTA’s opinion, Congress must do something it seldom does. It must take a lead to avoid unforeseen consequences. Federal legislation is needed to “build a fence” around appropriate state laws affecting interstate commerce. We will be working toward that end.

ICTA will have much more detail and analysis at the World’s Fair of Money.

About ICTA

ICTA is a 501(c)(6) non-profit association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website — ictaonline.org.